Safe and Sound

HOBOKEN N J POLICE

HOBOKEN, NJ
5
Star Rating
HOBOKEN N J POLICE is a HOBOKEN, NJ-based, NCUA-insured credit union started in 1953. Regulatory filings show the credit union having $9.9 million in assets, as of December 31, 2017.

With 4 full-time employees, the credit union currently holds loans and leases worth $6.8 million. HOBOKEN N J POLICE's 806 members currently have $7.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HOBOKEN N J POLICE exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is valuable. It works as a buffer against losses and provides protection for members during periods of financial trouble for the credit union. When looking at safety and soundness, more capital is preferred.

HOBOKEN N J POLICE scored above the national average of 15.65 points on our test to measure capital adequacy, racking up 30 out of a possible 30 points.

HOBOKEN N J POLICE's capitalization ratio of 30.00 percent in our test was better than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

Having lots of these types of assets may eventually force a credit union to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, HOBOKEN N J POLICE scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

HOBOKEN N J POLICE's ratio of problem assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand financial trouble. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's test of earnings, HOBOKEN N J POLICE scored 14 out of a possible 30, above the national average of 10.11.

HOBOKEN N J POLICE had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating its peers in this area.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.